Choosing Opponents in Prisoners' Dilemma: An Evolutionary Analysis
AbstractWe analyze a cooperation game in an evolutionary environment. Agents make noisy observations of opponents’ propensity to cooperate, called reputation, and form preferences over opponents based on their reputation. A game takes place when two agents agree to play. Pareto optimal cooperation is evolutionarily stable when reputation perfectly reflects propensity to cooperate. With some reputation noise, there will be at least some cooperation. Individual concern for reputation results in a seemingly altruistic behavior. The degree of cooperation is decreasing in anonymity. If reputation is noisy enough, there is no cooperation in equilibrium.
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Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2005:45.
Length: 23 pages
Date of creation: 29 Nov 2005
Date of revision:
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Cooperation; Conditioned Strategies; Prisoners Dilemma; Signaling; Reputation; Altruism; Evolutionary Equilibrium;
Find related papers by JEL classification:
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-09 (All new papers)
- NEP-CBE-2005-12-09 (Cognitive & Behavioural Economics)
- NEP-EVO-2005-12-09 (Evolutionary Economics)
- NEP-GTH-2005-12-09 (Game Theory)
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